Documentos de Académico
Documentos de Profesional
Documentos de Cultura
December 2008
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ME TA L S
December 2008
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ME TA L S
December 2008
Primary Secondary
Non-Ferrous producers producers
Metals
has only a few players Many players in the organised
and unorganised sectors
Ferrous
Secondary producers
Ore miners Integrated / Re-rollers
}
Metals Main producers
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ME TA L S
December 2008
0 1 2 3 4 5 6 0 10 20 30 40 50 60 70
Million Tonnes Million Tonnes
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ME TA L S
December 2008
Growth in manufacturing and infrastructure is fuelling India is the seventh largest producer of Crude Steel
demand for steel products, driving growth in the sector
Top producers of Crude Steel in 2008 (Apr-Sep)
China 389
Japan 92.3
USA 76
Russia 56.5
S. Korea 41.3
India 41.1
Germany 36.2
Ukraine 31.5
Brazil 26.8
Italy 24.2
Million Tonnes
Source: www.worldsteel.org
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ME TA L S
December 2008
0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 8 9 10
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December 2008
Belgium and USA are key exports markets China and Korea are the key sources for imports
Top 10 steel exports destinations (2007-08) Top 10 steel import destinations (2007-08)
0 100 200 300 400 500 600 700 0 200 400 600 800 1,000 1,200 1,400 1,600
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ME TA L S
December 2008
Sterlite Industries Bharat Aluminium Company Limited (BALCO) 2006 211 359 429
Madras Aluminium Company Limited (MALCO)
2005 136 338 409
Public Sector National Aluminium Company Limited (NALCO) CAGR 10.9%
2004 129 198 388
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ME TA L S
December 2008
Electrical, Automotive and Construction sectors are Aluminium Consumption by Sector in 2006
the key consumers
27%
31%
11%
18%
13%
n Electrical n Automotive
n Building & Construction n Packaging
n Others
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ME TA L S
December 2008
2007 643
• A/C and Refrigeration Tubings
2006 522
2005 413
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ME TA L S
December 2008
Key User Sectors: Hindalco and Sterlite garner 90% of the output
• Telecom Copper Industry Market Share HCL
• Power 6%
• Engineering
• Auto
46%
• Consumer Durables
48%
• Defence
n Hindalco n Sterlite
n HCL
Source: ICRA Sector Analysis, June 2008
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ME TA L S
December 2008
2003-04 254.5
16%
n Galvanising n Castings
n Die Casting Alloys n Oxides and Chemicals
n Extruded products
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ME TA L S
December 2008
2002 283 7%
CAGR 9.7%
2003 300
2006 410
n Tubes n Sheets
n Structurals n Wires
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ME TA L S
December 2008
India’s penetration levels are substantially lower, Per Capita Consumption of Steel
not only when compared to mature markets, but
also countries like China UAE 1314
Japan 649
Germany 469
USA 382
India 38
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ME TA L S
December 2008
Japan 32
Japan 12
India 0.15
0 5 10 15 20 25 30 35
Kgs 0 2 4 6 8 10 12 14
Kgs
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ME TA L S
December 2008
Government policies play an important role for the growth of the industry
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ME TA L S
December 2008
Government policies play an important role for the growth of the industry
• Steel
* The
National Steel Policy (NSP) 2005 lays emphasis
on improving productivity, efficiency, cost, qualityand
product mix for accelerating growth in the
domestic production and consumption of steel
* Import duties on various steel products have been
reduced from 15 per cent to 10 per cent. Customs
duty on alloy and stainless steel reduced to
five per cent
* Duty
on nickel reduced from five per cent
to two per cent, to help domestic stainless
steel manufacturers tackleincrease in global
raw material prices
Source: www.chemicals.nic.in/petro1.htm
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ME TA L S
December 2008
Government policies play an important role for the growth of the industry
• Copper
* C
opper and Copper products can be imported at
Zero Duty from Sri Lanka under the Free Trade
Agreement (FTA) with that country
* D
uties on copper and copper products have been
progressively reduced – for example, customs duty
has been reduced from 35 per cent in 2001 to
10 per cent in 2006
Source: www.chemicals.nic.in/petro1.htm
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ME TA L S
December 2008
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December 2008
Customer Power
• User industries experiencing strong growth
• Highly demanding customers
• W
ide range of products, specifications to meet
different needs
Threat of Substitutes
• P
lastics and other substitutes being tried out
in some user segments
• No viable substitute in a majority of usage areas
HIGH
Source: KPMG Analysis
MEDIUM
LOW
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December 2008
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December 2008
• T
hough the sector is capital intensive, the growth
opportunity presented by the sector makes it
attractive for investment
• G
etting into JVs or Strategic Alliances with Indian
players could be a winning proposition for new
investors to leverage this growth
Source: www.plastindia.org
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AP P E N D I X
METALS • December 2008
• R
aw materials supply for key metals is concentrated in
certain states:
* Copper reserves – Bihar, Rajasthan, Madhya Pradesh
* Bauxite – Orissa, Chattisgarh, Karnataka
* Iron Ore – Orissa
• A
ccess to raw materials supply, labour and energy
are key requirements for setting up operations in this
sector
• B
ased on these factors, Orissa, Chattisgarh, Madhya
Pradesh, Andhra Pradesh and Karnataka could be
attractive locations for investment in the sector
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AP P E N D I X
METALS • December 2008
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AP P E N D I X
METALS • December 2008
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AP P E N D I X
METALS • December 2008
Essar Steel
• P
romoted by the mumbiai-based Essar group which
is into Power, Shipping, Oil & Gas, Construction and
Telecom
• Sales – US$ 2.9 billion in 2007-08
• O
ffers over 300 customised grades of Steel and is on
the approved list of companies for supplies to some
of the world’s most renowned automotive companies
and Oil & Gas Pipeline projects
• Plants – Hazira,Vishakapatnam and Indonesia
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AP P E N D I X
METALS • December 2008
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AP P E N D I X
METALS • December 2008
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AP P E N D I X
METALS • December 2008
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AP P E N D I X
METALS • December 2008
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AP P E N D I X
METALS • December 2008
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ME TA L S
December 2008
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